The Growth of Capitalist Wealth

Published:PravdaNo. 131, June 9, 1913.

      Signed:V. I..

      Published according to thePravdatext.Source:Lenin
	  Collected Works,

      Progress Publishers,1977,

      Moscow,Volume 19,

      pages203-205.Translated:The Late George HannaTranscription\Markup:R. CymbalaPublic Domain:Lenin Internet Archive

      (2004).You may freely copy, distribute,
	display and perform this work; as well as make derivative and
	commercial works. Please credit “Marxists Internet
	Archive” as your source.•README

Capitalistsare not inclined to be frank about their in
comes. “Commercial secrets” are strictly guarded and it is very difficult
for the uninitiated to penetrate the “mysteries” of how riches are piled
up. Private property is sacred—no body is permitted to meddle in the
affairs of its owner. Such is the principle of capitalism.

Capital,however, has long since overstepped the bounds of private
property and introduced joint-stock companies. Hundreds and thousands of
shareholders who do not know each other make up a single enterprise; and
these property-owners are quite often diddled by smart businessmen who
empty the pockets of their business partners using “commercial secrets”
as a cover.

Sacredprivate property has been forced to sacrifice a bit of its
sacredness; laws have had to be made compelling joint-stock companies to
keep proper books and publish the chief results of their accountancy. This,
of course, has not prevent ed the public being swindled; the swindling has
merely taken new forms and become more subtle than before. Big capital,
gathering around itself small sums of shareholders’ capital from all over
the world, has become more powerful still. Through the joint-stock company,
the millionaire now has at his disposal not only his own million, but
additional capital of, say, 800,000 rubles that may have been gathered from
8,000 petty proprietors.

Thismakes the absurdity of capitalism much clearer to the masses of
the population.

Take,for example, the published reports of insurance companies in
Russia over a period of ten years, from 1902 to 1911.

In1902 share capital amounted to 31.3 million rubles (in 21
joint-stock companies), and in 1911 (in the same 21 companies) it was 34.8
million rubles. The greater part of the capital usually belongs to a
handful of millionaires. Ten or twenty magnates perhaps hold shares for
eighteen million rubles, which, gives them a majority vote, and they can,
without any control, dispose of the other thirteen or sixteen million
rubles belonging to “small” shareholders.

Theprofessors who defend capitalism chatter about the increase in the
number of property-owners when they see a growth in the number of small
shareholders. What actually happens is that the power (and the income) of
the millionaire magnatesoverthe capital of the “small fry” is
increased.

Justsee how our insurance kings have expanded in the course of this
ten years, Theaveragedividend on share capital for the ten years
wasmorethan 10 per cent! Not a bad profit, eh? In the worst year
of the decade they “earned” six kopeks in the ruble, and in the best year
twelve kopeks!

Reservecapital was doubled—in 1902 it amounted to 152,000,000 rubles
and in 1911 to 327,000,000 rubles. Property was almost doubled as well—in
1902 it was valued at 44,000,000 rubles and in 1911 at 76,000,000 rubles.

Theresult—in ten years in twenty-one companies, 32,000,000 rubles’
worth ofnewproperty!

Who“earned” this property?

Thosewho did not work, the shareholders, and first and foremost the
millionaire magnates who hold most of the shares.

Thework was done by hundreds of employees, who canvassed insurance
clients, inspected their property and laboured over the accounts. These
employees remained employees. They do not receive anything more than their
salaries (which, as we know, are in the majority of cases insufficient even
to maintain a family decently). They cannot accumulate any property.

Ifany of the magnates did a bit of “work”as a director, he
receivedspecialremuneration in the form of a ministerial salary
and bonuses.

Thegentlemen holding the shares grew richfor notworking. During the decade they received on the average three millions a
year net profit for the “toil” of clipping coupons, and accumulated
additional capital to the tune of thirty-two million rubles.